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3 thoughts on “Today’s Housing Bubble Post”

How about the Chronicle’s lead… “Owning a home better than working”?
Homeowners find much to appreciate
Despite rising interest rates, sales and prices in the Bay Area rocket to new highs. How high? The annual increase in the median home price now tops the region’s typical household income.
Kelly Zito, Chronicle Staff Writer
Friday, April 15, 2005http://sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/04/15/MNG29C9D8D1.DTL
Forget the stock market or working for a living. Homeowners in the Bay Area made more money last year simply occupying their lofts, townhomes and suburban tract houses.
At least on paper.
The numbers say it all: Between February and March, the median price for a single-family house jumped $36,000, or 6.3 percent. Over the last 12 months, it soared $106,000, or 21 percent, hitting $605,000 in March.
That appreciation far exceeded the $74,124 the typical Bay Area household earned last year, according to Economy.com. And it certainly outpaced the stock market, which is down 4 percent in the last 12 months. If you’d bought a 10-year government bond on March 31, 2004, you would have received about 3.9 percent in interest in the last year.

Time to get stocked with toilet paper, bottled water and beans.
That bubble can’t break soon enough for me. I’m sick of bulldozers and chainsaws 14 hours a day. If it bursts soon enough I might get to avoid the hammers and saws.
Maybe you would be kind enough to share the names of your favorite economical and tasty vegetarian dishes so we can stock up on other ingredients as well.
Right now everything goes to the credit card.

With rising oil prices, rising interest rates, an increasing deficit, and sliding dollar, I’ve been increasingly pessimistic on stocks for several weeks now and mentioned to the wife two weeks ago that we should consider selling ours and move into cash until we figure out what’s happening. Last week’s further slide hurt us (I procrastinated and didn’t sell), so yesterday we sold and are holding a cash position.